The Reserve Bank of India (RBI) has issued new guidelines for debit and credit card users in order to make transactions more secure and prompt users to be more discipline towards their finances. The new rules will be effective from October 1.
The RBI had directed all banks to not unnecessarily give international facilities to customers' cards, unless the customer himself demands it. The move is aimed to stop increasing fraud transactions using debit and credit cards.
The guidelines are:
- As per new guidelines, customers will get the option to register for preferences such as opt-in or opt-out services, spend limits and other services for online transactions, international transactions and contactless transactions.
- The debit and credit card services will only be enabled for transactions at ATMs (domestic) and Point of Sale terminals.
- Both debit and credit holders will now be allowed to set up a transaction limit.
- The cardholders will have option to allow or not to allow a particular service on their credit-debit cards such as ATM, POS, E-Commerce or NFC.
- RBI has asked all banks, card issuing companies to disable online payment for all debit, credit cards that have never been used for online or for contactless transactions in India or abroad.
- Cardholders will also get the option to enable or disable the NFC feature also.
The latest guidelines are aimed at reducing the frauds from card cloning.
